TEST 2

COURSE : FINANCIAL ACCOUNTING

COUSE CODE : FSPS0042
EXAMINATION : APRIL 2023
TIME : 1 HOUR 30 MINUTES

INSTRUCTION TO CANDIDATES

1. This question paper consists of two (2) questions.

2. Answer ALL questions in English.
3. ALL answer must be HANDWRITTEN, CLEAR and READABLE.
4. STRICTLY NO COPYING, CHEATING AND DISCUSSION. YOUR HONESTY IS HIGHLY
REQUIRED.
QUESTION 1

Given below are the cash book and bank statement of Nana Enterprise for the month of
December 2019.

Bank Account
RM RM
Dec. Dec.
1 Balance b/d 5,000 8 Yaya Store 650
15 Danial 1,350 10 SNF Bhd. 900
25 Syawal 800 12 Purchases 1,200
29 Syakir 1,250 20 AHI Co. 1,210
31 Sales 800 23 Telephone 300
29 Wages 2,100
31 Balance c/d 2,840

9,200 9200

Date Debit Credit

Particulars Balance
2019 RM RM
Dec
1 Balance b/f 5,000 5,000 Cr
9 Cheque 650 4,350 Cr
12 Cheque 1,200 3,150 Cr
10 Dividend 100 3,250 Cr
12 SNF Bhd. 900 2,350 Cr
17 Deposit 1,350 3,700 Cr
27 Deposit 800 4,500 Cr
28 Credit transfer 1,000 5,500 Cr
29 Dishonoured cheque 500 5,000 Cr
30 Standing order 2,000 3,000 Cr
31 Bank charges 40 2,960 Cr

Prepare the following:

a) The adjusted cash book. (4 marks)

 Adjusted Bank Account
RM RM

Balance b/d 2,840 Dishonoured cheque 500

Dividend 100 Standing order 2,000
Credit transfer 1,000 Bank charges 40
Balance c/d 1,400

3,940 3,940

b) The bank reconciliation statement as at 31st December 2019. (4 marks)

RM RM
Balance as per adjusted bank account 1,400
Add: Unpresented cheque
AHI Co. 1,210
Telephone 300
Wages 2,100 3,610
5,010
Less: Uncredited cheque
Syakir 1,250
Sales 800
2,050
Balance as per bank statement 2,960
 Alternative solution

RM RM
Balance as per bank statement 2,960
Add: Uncredited cheque
Syakir 1,250
Sales 800
2,050

Less: Unpresented cheque

AHI Co. 1,210
Telephone 300
Wages 2,100

3,610
Balance as per adjusted bank account 1,400
QUESTION 2

The following Trial Balance has been extracted from the books of Emas Tika Trading as at
31st March 2019.

Dr (RM) Cr (RM)
Capital 95,547
Inventory as at 1 April 2018 35,400
Receivables 20,500
Payables 12,950
Delivery van 94,500
Salaries 36,000
Carriage inwards 4,522
Carriage outwards 2,700
General expenses 6,400
Insurance 2,400
Repair on delivery van 2,850
Loan from Maybank Finance 24,000
Cash at bank 37,230
Discount allowed 2,875
Discount received 5,250
Fixtures and fittings 19,400
Water and electricity 3,000
Drawings 3,500
Allowance for discount allowable as at 1 April 2018 255
Allowance for doubtful debts as at 1 April 2018 325
Purchases 145,000
Sales 253,500
Return inwards 13,000
Return outwards 13,200
Accumulated depreciation as at 1 April 2018:
Fixtures and fittings 7,000
Delivery van 28,750
Fixed deporit in CIMB Bank Berhad (8%) 10,000
Interest on loan from Maybank Finance 1,500
440,777 440,777
The following additional information is given:

(i) Insurance is for one year starting from 1 August 2018.

(ii) The interest expense on the loan from Maybank Finance was 12.5% per annum
and a half-year interest was still owing.
(iii) The owner of Emas Tika Trading had taken goods costing RM 700 during the year
for personal use and this had not been recorded in the books.
(iv) A new delivery van costing RM 20,000 was bought on 17 December 2018 by
cheque and this amount had been included in the amount. Depreciation is to be
provided for as follows:

Delivery van RM 18,900

Fixtures and fittings RM 1,940

(v) Included in the general expenses is an amount of RM 1,400 paid for repairing the
owner’s house.
(vi) The owner’s son worked temporarily in the business for one month and was paid a
salary of RM 500. This amount was wrongly charged to drawings.
(vii) Closing inventory as at 31 March 2019 was RM 32,000.
(viii) The fixed deposit account was opened on 31 March 2019.

Required:

a) Prepare the Statement of Profit and Loss for the year ended 31st March 2019.
(16 marks)
 Emas Tika Trading
Statement of Profit and Loss for the year ending 31st March 2019

RM RM RM
Sales 253,500 /
Less: Return inwards -13,000 /
240,500
Less: Costs of sales
Opening inventory 35,400 /
Purchases (145,000 - 700) 144,300 //
Less: Return outwards -13,200 /
Add: Carriage inwards 4,522 /
135,622
171,022
Less: Closing inventory -32,000 /

Cost of sales 139,022

Gross Profit 101,478

Add: Revenue
Discount received 5,250 /
106,728

Less: Expenses
Depreciation of van 18,900 /
Depreciation of fixtures and fittings 1,940 /
Discount allowed 2,875 /
General expenses (6,400 - 1,400) 5,000 //
Salaries (36,000 + 500) 36,500 //
Carriage outwards 2,700 /
Water and electricity 3,000 /
Insurance (2,400 - 800) 1,600 //
Interest expense (1,500 + 1,500) 3,000 /
Repair on delivery van 2,850 / 78,365

Net Profit 28,363

23/23 x 16 = 16
 b) Prepare the Statement of Financial Position as at 31st March 2019.
(16 marks)

Emas Tika Trading

Statement of Financial Position as at 31st March 2019

RM RM RM
Non current assets:
Delivery van 94,500 /
Less: Acc provision for depreciation (28,750 + 18,900) -47,650 // 46,850

Fixtures and fittings 19,400 /

Less: Acc provision for depreciation (7,000 + 1,940) -8,940 // 10,460

Fixed deposit 10,000 /

Total non-current assets 67,310

Current assets:
Bank 37,230 /
Account receivable (20,500 - 255) 20,245 //
Less: Allowance for doubtful debts -325 / 19,920

Closing inventory 32,000 /

Prepaid insurance 800 /
Total current assets 89,950
Total assets 157,260 /

Owner's equity:
Capital 95,547 /
Net profit 28,363 //
Less: Drawing (3,500 - 500 + 700 + 1400) -5,100 ////
Total equity 118,810

Current liabilities:
Accounts payable 12,950 /
Accrued interest 1,500 //
14,450

Non-current liabilities
Loan from Maybank Finance 24,000 /
38,450

Total equity and liabilities 157,260 /

26/26 x 16 =16